Abstract:
Oil is a crucial economic input and Pakistan’s growth, production levels,
and price levels are affected significantly by oil price volatility. This paper
captures the impact of oil price shocks on Pakistan’s economy by considering
variables such as gross domestic product, the wholesale price index, and largescale
manufacturing index. Our analysis is based on vector autoregression and
the results are in line with similar studies. We also determine the precise shortterm
or long-term impact of oil price volatility on the relevant variables.
